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Goodbye, Montana

December 30, 2010 | Montana | Comments (1)

From the story:

When it comes to a short term loan like the payday loans, the benefit for the lenders depends on the interest rate. Generally, people don’t take huge amounts as payday loans and hence if the interest rate is not high, then it does not turn out to be a realistically profitable endeavor for the payday loan lenders. When it comes to US, the interests are being capped in many states recently, Montana joining the list as 16th now. From 1st of January, 2011, it will become a law in Montana so that lenders won’t be able to charge interest more than 36%.

As a result, payday lenders are leaving the state and finding other places to continue with their business. Many actually left right after November when the Montana voters passed this initiative overwhelmingly. Those who already left include names like Express Loans, B&R Check Holders etc.

When will our critics debate rate caps honestly?

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Comments»

1. Socialist Slayer - December 30, 2010

When will our critics debate rate caps honestly?

It’s a valid question, but I know you aren’t holding your breath waiting for a debate.
For the most part payday critics are from the left. Let’s look at how honest the left is about something everyone can see, literally, in broad daylight: the weather. The left, lead by none other than Al Gore, have been chanting this global warming mantra for over two decades. Based on temperatures, it had some merit in the 90s. The last 10 years temperatures have held steady or gone down (and that’s not even accounting for false data they have been caught manufacturing). This past few weeks there has been record setting snow and cold temperatures in both Europe and the US. What does the left have say about that? It’s global warming. Whether it be warm or cold, all weather is due to global warming.
With that kind of reasoning on something that is so transparent, how likely will it be for the left to be honest about something as opaque and abstract as non-APR interest rates.
If such a debate were ever to take place, I can guarantee these words would be used as much as possible: greedy, predatory, threatened, corporations, unfair, complicated, tricked, (the) poor, (single) moms, trapped, and burden. The place would be flooded with the sounds of violins and the dropping of crocodile tears.